household debt

J. L.M.Campuzano | Spanish household debt continued to reduce in 2017, reaching 61% of GDP (down 3%), according to the Bank of Spain. It has fallen 24% since its máximum level reached in 2010. Company debt at the end of the year amounted to 78% of GDP, with a fall of 5% over 2016. Company debt has fallen 39% since its maximums.

It’s clear that the prices of physical and financial assets are growing a lot, while debts are increasing strongly. As experience shows, it’s difficult for everything to get back to normal systematically.

The International Monetary Fund (IMF) issues a warning: household debt in advanced economies has risen on average from 52% to 63% of GDP in 2008-2016. In the developing world, household debt levels were lower, rising from 15% to 21% over the same period. But Spain’s case is different.